Part of the funding for the Lummis Bitcoin Reserve Plan will come from the revalued Federal Reserve gold
ChainCatcher News, U.S. Senator Cynthia Lummis's new strategic Bitcoin reserve plan will provide partial funding for cryptocurrency purchases by revaluing the gold certificates held by the Federal Reserve System.The plan requires setting aside $6 billion from any net profits transferred from the Federal Reserve to the Treasury from fiscal year 2025 to fiscal year 2029, and reducing the discretionary surplus funds of the Federal Reserve Banks from $6.825 billion to $2.4 billion, which is the level currently mandated by the Federal Reserve Act.According to the plan, within six months of the legislation taking effect, the Federal Reserve Banks will submit all outstanding gold certificates to the Secretary of the Treasury. Within 90 days thereafter, the Secretary of the Treasury will issue "new gold certificates reflecting the fair market price of gold" to the Federal Reserve Banks. The Federal Reserve Banks will then transfer the cash value difference between the old certificates and the new certificates to the Secretary of the Treasury.According to the bank's recent balance sheet update, as of July 24, the Federal Reserve Banks hold $11 billion in "gold reserves." This valuation may be based on the official U.S. book value used by the New York Federal Reserve Bank to assess its gold, which is $42.22 per troy ounce.
